JUDGMENT

Su Geok Yiam JC:

This is an application by the plaintiff videsummons in chambers (encl. 6) for summary judgment for specific performance of a contract of guarantee against the 1st defendant for the buy back by the 1st defendant of 15,569,000 Pacific Matrix shares and for the payment by the 1st defendant of a sum of RM3,658,555.04 representing the buy-back price of the 15,569,000 Pacific Matrix shares under O. 81 of the Rules of the High Court 1980 (hereinafter referred to as "the RHC").

Facts And Background

The plaintiff is a businessman. The 1st defendant is a private limited company incorporated in Malaysia and having its registered address at No. 44A, Jalan Che Wan, 30250 Ipoh, Perak.

The plaintiff has averred in his affidavit affirmed on 11 July 2000 (encl. 7) in support of his application that the 1st defendant is and was at the commencement of this action justly and truly indebted to the plaintiff in the sum of RM3,658,585.04.

The plaintiff has endorsed his writ of action (encl. 1) with the following particulars of his claim:

(1) the plaintiff's claim against the 1st defendant is based on a contract of guarantee entered into between the plaintiff and the 1st defendant on 30 November 1998, (exh. "YKH-2", encl. 7, hereinafter referred to as "the said contract of guarantee");

(2) pursuant to cl. 1.1 of the said contract of guarantee the defendant has agreed to buy back 15,569,000 ordinary shares in Pacific Matrix Limited (hereinafter referred to as "the Pacific Matrix shares") should the shares not be bought back by one Meridian Concord Sdn Bhd, a company incorporated in Malaysia (hereinafter referred to as "the said purchaser") from the plaintiff pursuant to a supplementary agreement also dated 30 November 1998 (exh. "YKH1", encl. 7, hereinafter referred to as "the said supplementary agreement");

(3) by two sale and purchase agreements both dated 4 January 1997 (hereinafter referred to as "the said principal agreements") the plaintiff as vendor agreed to sell to the said purchaser two pieces of lands held under H.S.(D) 292 Lot 208 and H.S. (D) 293 Lot 209 both in the Mukim of Tanah Rata, District of Cameron Highlands (hereinafter referred to as "the said properties") for a consideration of RM3,895,890;

(4) the said purchaser failed to complete the purchase by paying the balance of the purchase price in accordance with the terms and conditions of the said principal agreements and the plaintiff was entitled to terminate the said principal agreements;

(5) in consideration of the plaintiff agreeing not to terminate the principal agreements and entering into the said supplementary agreement which granted an extension of time to the said purchaser to complete the purchase and varied the mode of payment of the purchase price the 1st, 2nd and 3rd defendants entered into the said contract of guarantee on 30 November 1998 with the plaintiff;

(6) under the said contract of guarantee the defendants agreed and undertook to guarantee the performance by the said purchaser of the terms and conditions of the principal agreements as varied by the said supplementary agreement to be executed by the plaintiff and the said purchaser;

(7) under cl. 5 of the said contract of guarantee the 1st defendant is also liable to the plaintiff as a principal debtor for all moneys due and owing by the said purchaser;

(8) as a result of the said contract of guarantee, the plaintiff entered into the said supplementary agreement with the said purchaser on the same date as the said contract of guarantee, ie, 30 November 1998;

(9) under the said supplementary agreement the plaintiff granted an extension of time to the said purchaser to complete the purchase of the two properties and the said purchaser agreed, inter alia, to:

(a) pay the increased purchase price to the plaintiff in respect of both properties in the sum of RM4,348,173.90;

(b) pay RM300,000 to the plaintiff on 15 November 1998 as part payment of the purchase price;

(c) settle the balance o